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The pandemic demonstrated that digital readiness isn’t just vital for digital jobs but for any company vying for profitability.

If the financial services industry wants to compete in the modern market, it must integrate top emerging technologies like AI (Artificial Intelligence) and beyond to reach the modern customer. 

This means adapting antiquated practices for the digital age, incorporating new technologies and trends,  and it means employing a tech-savvy team equipped to handle the ever-changing marketplace. A technology-forward consulting team can support your digital transformation.

One key impact of tech on financial services is talent acquisition and retention.

Attracting and retaining the talent necessary for ongoing success in financial services has seen major shifts in 2023 thanks to technological advances and the trending use of new software and digital-ready practices. 

If financial services companies plan to stay in business, they need to adopt modern technologies and a tech-ready workforce.

In this article, we’ll focus on how top human resources professionals in financial services companies are staying ahead of the curve by incorporating technology to compete in the modern market. 

Using Advanced Analytics Strategically

Financial services firms are optimizing their geographical footprint by assessing physical locations and considering the potential for consolidation, expansion, or relocation. 

Leveraging advanced location analytics tools and technologies, financial services firms are accounting for factors such as talent availability, cost of living, proximity to technology hubs, and market opportunities.

The result is synergy between physical and digital operations. 

With a focus on updated technologies, driving growth and improving profitability can be as simple as reviewing the data and making changes accordingly.

High-cost locations have put many BFSI companies in a uniquely complex circumstance: top talent is abundant and demanding, forcing companies to compete with each other to attract and retain such talent.

This gives outside talent the upper hand, and companies must think outside the box to compensate them. 

A well-thought-out workflow, incorporating the fastest and finest technology is a great place to start for employee retention. This makes work life smooth and improves customer experience.

Diversifying Benefits to Attract and Retain Key Talent

As tech companies pave the way in making the employee experience more gratifying, the options of benefits to attract and retain talent become more and more intricate.

Here are some key strategies to sell talent on joining your team:

  • Get baseline compensation right: In the tech-driven war for talent, it’s crucial to benchmark jobs with specific, in-demand skills to ensure your compensation package is suitable for tech talent. Accurate compensation isn’t just a trend it demonstrates the company’s commitment to employee satisfaction.
  • Implement specific cash/equity plans: Borrowing from popular tech company practices, financial services firms are introducing special recognition programs in the form of additional cash or equity. These programs reward key contributors, high performers, and new hires, providing a competitive edge without necessarily exceeding salary ranges or overtaxing your salary budget. 
  • Focus on employee experience: Beyond compensation, the employee experience plays a vital role in attracting and retaining talent. Setting up offices with lifestyle benefits such as free catered lunches, fitness classes, flexible work schedules, or remote work options WFH can differentiate your financial services firm and appeal to talent. Employee experience also depends on implementing better management practices to solve challenges and risks.
  • Create an enabling work environment: Cutting-edge firms have adopted an agile work model with flat/collaborative organization structures to enable a fast-paced work environment. Add project management software to the workflow, and your team can quickly become more efficient and effective. Plus, this emerging model encourages the flow of ideas from all levels and significantly increases employee input and satisfaction.

Improving the Digital Readiness of Employees

Improving the digital readiness of all employees is essential for successful digital transformation in financial services.

This involves talent assessment of the existing workforce with top-of-the-line software, identifying skill gaps, and developing targeted training programs for upskilling and reskilling employees. 

Here are several steps financial services firms can take to achieve this:

  • Assess and develop your leaders: Leaders play a critical role as catalysts and role models for successful changes across a firm. Have conversations with your C-suite executives to discuss the implementation of emerging tools like AI and its role in modern finance.
  • Assess and up-skill your existing employees: With modern, digital training tools, upskilling employees has never been simpler, even in a compliance-ridden industry. Evaluate your employees and identify any competency gaps that need closing for a technologically advanced workplace. Then, adopt targeted development programs to address these skill gaps, or work with digital training agencies to create training programs to meet your needs.
  • Adjust your recruitment process: Redesign job roles to reflect the new key duties required for digital working. Consider working with a consultant that’s prepared to provide insight and help adapt your financial services firm. 
  • Initiate intelligent digital processes: Develop new work practices, systems, processes, and workflows that support digital working, agility, and innovation. Replace outdated practices that may hinder digital transformation (e.g. silo-based working).

Failing to Adapt to Digital Transformation: Consequences in Financial Services

Failing to adapt to digital transformation can have severe consequences for financial services firms.

Ignoring the need of attracting and retaining top talent can result in a company losing relevance, market share, and customer loyalty to more digitally native competitors. 

By not embracing digital technologies and leveraging their potential, these firms may struggle to meet customer expectations, deliver personalized experiences, and optimize operational efficiency. 

If you know your financial services organization needs to move forward with a technologically driven approach, but you’re not sure where to start, the Hunter Stevens consulting team is prepared to offer innovative, integrated solutions to set your organizational transformation in motion.

Digital Transformation in Financial Services

Hunter Stevens LLC is a full-service management consulting firm that helps clients solve problems and optimize financial outcomes.

We offer performance improvement and interim management services to help guide financial services companies toward sustained profitability in the long term, including with technology challenges, and tech implementation.

By leveraging the expertise and services of Hunter Stevens LLC, financial services firms can navigate the digital landscape more effectively, attract and retain key tech talent, and drive successful digital transformation initiatives.

Learn more about our services and schedule a consultation.